Sunday, December 4, 2022

Semafor below hearth for not returning funding by FTX’s Sam Bankman-Fried

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Semafor, a information website launched final month after getting a big infusion of money from disgraced FTX founder Sam Bankman-Fried, has come below hearth for staying mum about whether or not it should return the now-bankrupt crypto agency’s cash.

Bankman-Fried was reportedly an preliminary investor within the $25 million raised by Semafor’s founders — former Bloomberg Media CEO Justin Smith and former New York Occasions media columnist and Buzzfeed editor in chief Ben Smith.

After FTX imploded and filed for chapter this month, there have been requires Semafor to return the money.

Semafor has not addressed the problem, stating to blogger Mickey Klaus that it’s “monitoring the evolving state of affairs carefully.”

In his weblog submit entitled “Ship it Again Ben,” Klaus wrote: “That’s good, however truly, I wasn’t apprehensive that Semafor wouldn’t be capable of maintain on to its Bankman bucks. The query extra is: Will Semafor give the cash again?”

Sam Bankman-Fried, founder and chief executive officer of FTX
Sam Bankman-Fried, founder and chief govt officer of FTX, invested in a slew of media firms, together with Semafor.
Bloomberg through Getty Pictures

He continued that “legally” the problem is murky, however that “morally,” it appears “open and shut.”

“Possibly Bankman-Fried wasn’t a felon…..however the stench of sleaze and scamming is unmistakable and acquainted,” he wrote.

A Semafor rep didn’t return The Put up’s request for remark.

Semafor’s credibility additionally got here into query after it revealed an article about Bankman-Fried’s relationship with Elon Musk, claiming that the crypto CEO owned $100 million in Twitter since Musk took the corporate personal.

Ben Smith
Ben Smith’s Semafor revealed a chunk on Elon Musk’s ties to Sam Bankman-Fried, which was slammed by the Twitter CEO as a “lie.”
Getty Pictures

Musk denied the report and referred to as out Ben Smith for failing to reveal how a lot Bankman-Fried, referred to as SBF, invested in his firm.

“As I stated, neither I nor Twitter have taken any funding from SBF/FTX. Your article is a lie. Now, I’m asking once more, how a lot of you does SBF personal?” Musk tweeted Wednesday.

Ben Smith replied: “Such as you and plenty of others, we took an funding from him. We now have lined him aggressively, and disclose it each time we write about him.”

At launch in October, Semafor instructed Reuters that it “raised $25 million from traders together with David Bradley, proprietor of The Atlantic journal; Jessica Lessin, founding father of know-how web site Data; and cryptocurrency change FTX founder Sam Bankman-Fried.”

As FTX unspooled, Bankman-Fried’s investments in different media firms like ProPublica, Vox Media, The Intercept and The Legislation and Justice Venture have been revealed, leaving critics to query whether or not his cash impacted their protection.

“All of them took it,” Human Occasions Each day’s Jack Posobiec wrote on Twitter, “and none of them broke the story.”

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